What are two conflicts of interest faced by an Investment Advisor who is employed by a commercial bank or an investment bank? Given his fiduciary responsibility to his clients, how can these conflicts be avoided or resolved?
Conflicts of interest
The conflicts that could come are many:
- The investment advisor could hide the bank's interest in a certain investment (i.e. whether the bank stands to gain from additional investment or the bank is already servicing the investment as a client). This fits along the lines of having to service two clients at ...
This is a comprehensive (with references!) look at the conflicts of interest faced by an investment advisor.